How Keysight Technologies' strategic MES implementation is transforming their manufacturing efficiency and quality
August 2024 | Case Study
KEYSIGHT TECHNOLOGIES
A Manufacturing Execution System (MES) is a comprehensive software solution that manages and monitors the production processes on the factory floor in real time.
By addressing the root causes of manufacturing inefficiencies and implementing an MES, we aimed to improve operational efficiency, production quality, and customer satisfaction significantly. This strategic shift from simply automating scheduling to overhauling the entire manufacturing process was essential for achieving our business goals and ensuring long-term success.
| ROLE(S) | Functional Systems Architect and Integration Team Lead |
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| TEAM | Digital Transformation |
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| DURATION | January 2024 - Ongoing |
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| TOOLS | Microsoft Visio, Powerpoint, Smartsheet |
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| SKILLS | Change Management, Project Management, Documentation |
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Amid the rising demand for chips and chip-making technology during the current AI boom, Keysight Technologies stands uniquely positioned to revitalize and grow its Semiconductor Infrastructure Support (SIS) business.
Keysight Technologies is an industry leader in creating laser interferometer and calibration systems, advanced measurement systems, and high-precision optical components for complex metrology applications. With a history of delivering more than 11,000 systems, their modular interferometry solutions are recognized for setting the standard in precision measurement across the semiconductor lithography, aerospace/defense, metrology, and manufacturing industries.
Learn more about how Keysight Technologies’s Semiconductor Infrastructure Support products are being used in the next generation of lithography machines.
In January 2024, Keysight Technologies leadership formed a new Digital Transformation team dedicated to transforming manufacturing operations at their Santa Clara optics fabrication site. The ongoing endeavour was known as the Semiconductor Infrastructure Support Digital Manufacturing Program.
The SIS Digital Manufacturing Program would drive a comprehensive manufacturing transformation at Keysight Technologies, fostering the alignment of leadership, unifying fragmented pieces of information, eliminating legacy systems and processes, and integrating new technology to improve manufacturing operations. Ultimately, the implementation of a Manufacturing Execution System (MES) would benefit both the business and its operations. The success of this initiative would be measured by a projected 50% increase in productivity and a 33% increase in production throughput.
THE OPPORTUNITY
The Semiconductor Infrastructure Support group produces critical components for a few high-profile clients; however, the business was grappling with critical issues that were not only undermining its operational efficiency and production throughput but also hampering overall customer satisfaction and revenue growth. On the operational side, teams were struggling with high attrition and low traceability while being simultaneously pulled into firefighting situations. The state of manufacturing execution ran on legacy and home-grown systems and there was no dedicated effort to transform the business and pull systems into the modern age of digitalization.
To address the issue, upper management initially proposed implementing an Advanced Planning and Scheduling (APS) system to automate weekly planning and scheduling. Their approach was to "stick to the plan and stick to the schedule," thinking it would solve the problem of meeting demand on time. However, the root of the problem was much more complicated than a poorly constructed plan and schedule.
As a part of the Digital Transformation Team, I helped to convince my Program Manager and upper management to reconsider their business strategy by implementing an MES as opposed to an APS. By tracking and documenting the transformation of raw materials into finished goods, an MES helps optimize operations, reduce waste, and improve product quality. Addressing the root causes of manufacturing inefficiencies through the implementation of an MES was crucial for meeting business goals and enhancing operational efficiency and customer satisfaction. This strategic shift from merely automating scheduling to overhauling the entire manufacturing process was essential for achieving our business goals and ensuring long-term success.
The SIS Digital Manufacturing Program subsequently began working on the implementation plan. It would need to dedicate resources to drive a complete transformative overhaul of manufacturing operations not just to implement an MES but also to integrate other auxiliary enterprise systems and software modules.
THE SOLUTION
Replacing the Legacy System with a Modern MES
To address the critical inefficiencies in our manufacturing operations, we initiated the replacement of our in-house legacy MES of 20+ years with a modern and fully integrated MES. This new MES was crucial for consolidating data collection and replacing the more than 100 instances of disparate spreadsheets that were being used across the operation.
Streamlining Data and Enforcing Control
As part of this transformation, we also focused on consolidating Product Lifecycle Management (PLM) systems and enforcing strict revision control on all documents. This would ensure that the data related to product development, manufacturing processes, and operational workflows is consistent and up-to-date.
Creating a Single Source of Truth
A key objective of the new MES implementation was to establish a single source of truth for all critical resource information. This included integrating machine and equipment availability data through an Equipment Management System (EMS), streamlining material and inventory management with Oracle, and consolidating people skills and information. By setting up systems that enforce a one-way flow of data, we aimed to eliminate the need for data reconciliation or cycle counting of inventory, thus enhancing the accuracy and reliability of our operational data.
Laying the Groundwork for Future Systems
While the APS system is out of scope for the current implementation, the new MES and its integrated systems will lay the groundwork for a more effective APS in the future. The accurate and reliable data provided by the MES will enable the APS to generate more reasonable and precise plans and schedules, ultimately driving further improvements in operational efficiency.
The successful implementation of this new MES and the consolidation of our data systems are expected to have a profound impact on our manufacturing operations, helping us achieve our business goals and ensuring long-term success.
HOW IT WAS DONE
To begin the transformation, we built an end-to-end workflow for the product lines, which had previously been nonexistent. This process involved interviewing end users, including material coordinators and manufacturing technicians, to gain insights into their daily challenges. We identified significant tool fragmentation and data loss, stemming from over 100 disparate Excel and SharePoint sources. By diagramming the current state of software system interactions, we were able to pinpoint the underlying reasons for the system's failure, providing a clear foundation for the necessary improvements.
ANALYZE
Understand the current processes and break down the end user's experiences. Determine areas that need cleaning up before the implementation.
We focused on developing common standards and simplification efforts across key areas, including equipment management, labour tracking, inventory management, job travellers, work instructions, quality data collection, and change management. To support this initiative, we created a Future State Architecture diagram in Visio, which served as a blueprint for the envisioned system improvements.
Additionally, we built out a comprehensive Product Requirements Document (PRD) for the new MES, ensuring that all necessary specifications and functionalities were clearly defined to guide the implementation process.
Click on the proposed architectural diagram to expand the view.
STANDARDIZE
Create standards and simplifications to avoid further operational variance and redundancy. Document changes and improvement plans for execution.
IMPLEMENT
Execute on standards and simplification efforts and begin implementation and integration of systems. Unify fragmentation under one common tool.
SUPPORT
Sustain changes by providing visible and comprehensive training and documentation. Elect change agents to lead ground efforts and regularly audit adherence.
Inventory Management
Establish new standards for quantity and ratios in Oracle and build-to-stock policies between management. Initiate the cleanup of Bill of Materials (BOM) data.
Labour Tracking
Standardize labour management with work schedules consolidated into a single file and format. Integrate people’s machine certification and skill requirements.
Equipments and Machines
Consolidate planned uptime, downtime, and maintenance into a single file type, format, and framework. Manage events with tracking, notifications, and service level agreements (SLAs).
Production Travellers
Digitize and standardize travellers to a single common format. Enhance routing efficiencies by integrating engineering drawings and specifications into electronic work instructions.
Work Instructions and Drawings
Create a user-friendly system with a single file type, format, and framework. Implement revision control, file and storage conventions, and SLAs for missing or incorrect files.
Data Collection
Implement a single user-friendly method to collect conformance and non-conformance data. Eliminating unnecessary data collection points during manufacturing execution.
THE IMPACT
The SIS Digital Manufacturing Program at Keysight Technologies has already revolutionized internal manufacturing processes by addressing core operational inefficiencies and outdated systems to enable about a 33% improvement in production throughput. Key areas such as labour management, equipment maintenance, inventory tracking, and job travellers were overhauled to ensure organizational standardization and streamline current operations.
The implementation of a new MES was pivotal to this transformation by replacing the outdated legacy system and eliminating over 100 fragmented Excel sheets that had previously been used for data collection and tracking. By digitizing and integrating enterprise-level systems and software modules across the board, we not only ensured that all information was accessible from a single source of truth but also created a more cohesive and efficient production environment. The new standards and streamlined processes created for better traceability of production, enhanced visibility into operational performance, and more accurate inputs for planning and scheduling.
The impact of this transformation, however, goes beyond just operations and revenue. The overall user experience for production staff and engineers has a strong upside for significant improvement, as they now have access to a more intuitive and unified system that reduces the risk of manual errors and increases the rate of worker productivity by approximately 50%.
In conclusion, by focusing on operational improvements, Keysight Technologies has been able to better position itself to meet customer demands, achieve revenue targets, and maintain a competitive edge in the market.
“If you don’t keep the users first, then nothing else makes sense.”